The Americas: An Introduction

Measuring the impact of the end of the Multi-Fiber Arrangement in the Americas is complicated by the ratification and implementation of the Dominican Republic-Central America Free Trade Agreement (CAFTA) and potential future trade agreements between the United States and Andean countries. As part of its CAFTA implementation commitments, the U.S. government is providing $180 million in labor capacity building assistance to the region over the next four years. Regardless of these new opportunities, the intentions of buyers in the region remain unclear, supplier factories are closing, and workers are experiencing layoffs.

In light of these dynamics a proposal was submitted and accepted in the September 2006 MFA Forum international convening to establish an Americas Working Group. The regional working group was established to examine:

• Industry-specific competitiveness analysis of the region and the countries.
• Industry-specific labor rights research of the region and the countries.
• A better understanding of what has transpired in the region since the end of quota.
• Addressing the needs of workers and factories when orders decline in the region.
• Buyer interest in the region - current and future sourcing plans.
• Existing multistakeholder initiatives in the region.

In 2007, the working group agreed that a Central America country focus would serve to address key issues and promote responsible competitiveness in the region.

Consistent with the Collaborative Framework, the objective of a Central America in-country engagement would be to capitalize on the existing initiatives in the country to build an in-country program based on the interest and commitment of all stakeholders (national and international) aimed at strengthening the industry and more effectively and collaboratively addressing country-specific concerns. The hope is that constructive and fruitful engagement in one country may encourage other countries to mirror the commitment.

The Americas working group now works at different levels of engagement in Mexico, Dominican Republic and Nicaragua.